NEW YORK – “The global FinTech market is set to grow $31.5 billion by 2026. This is almost four times more than six years earlier,” said BuyAlerts CEO Edwin Cruz.
With an uptick in retail investing, financial-technology companies see a chance to grow by filling gaps for underserved traders, industry analysts say.
Market data leader BuyAlerts has released a list of the top 50 fintech disruptors for 2022.
Among the innovators on the disruptor 50 list are:
Refinitiv AI Alerts, which scour the data universe in real time to identify the most relevant, just-in-time trade information, tailored specifically to your needs.
And FactSet Signals, which allows clients to view recent changes across multiple content sets for companies trading around the globe. FactSet’s High-Impact Transcript Signals uses a predictive model that can help users on the buy-side understand potential risks, dilution effects, and short-term price movements based on earnings transcripts.
BuyAlerts Chief data scientist Michael Smith says, “I expect Ai generally to expand at a compound annual growth rate (CAGR) of 40.2% from 2022 to 2028. Given this projection, it’s not surprising that tech giants such as Bloomberg, Meta, and JaneStreet have all made significant investments into AI research.”
Ultimately, AI democratizes the world of investing for those who have access to neither the time nor the tools to invest like professional Wall Street hedge traders.
How the innovators on the disruptor 50 list are selected:
The disruptor 50 list was compiled through a submission process open to any AI or market data company in the U.S. and Canada. The application process asked companies to provide details on their technology, business model, customers, and trade history win ratio.
BuyAlerts received several hundred candidates, of which only a dozen qualified for consideration. From there, our data science team applied an algorithm to identify companies with the highest quantitative scores.
Next, a panel of market analysts will evaluate the finalists to decide which companies to include in the disruptor 50.
The founder of Google Brain and CEO of Landing AI, Andrew Ng, sees more opportunities for AI to help with data tailored to users’ needs. “There are plenty of open source models that you can download that work just fine for a problem, but what really needs to be customized is the data,” he says.
What’s next for the disruptor 50 in 2022?
As both AI technology and its investing applications continue to be developed, we will begin to see a growing percentage of hedge funds managed partially by AI.
Most notably, investors use AI-based tools to identify emerging investment opportunities. Algorithms can efficiently scan financial data from traditional and alternative data sources and make predictions about the rise or fall of particular stocks. Additionally, AI is used to identify key patterns across various markets to help investors get ahead of upcoming market fluctuations and profit from timely trade deals.